Updates at Genworth Mortgage Insurance include new construction programs, higher loan-to-value ratios and lower credit score requirements.
On its Simplify Underwrite and standard guidelines, the mortgage insurer has added two close construction-to-permanent transactions.
In addition, on investment property loans, rate-term refinances are eligible for up to 85 percent LTV ratios with credit scores of at least 720.
The changes were discussed in Announcement 2016-2 from the
Raleigh, North Carolina-based company.
Eligibility updates on its standard guidelines include the elimination of the 3 percent minimum borrower contribution for loans with non-occupant co-borrowers.
Also removed are
restrictions on rental agreements for second homes. Rental income, though, remains ineligible for qualifying.
The changes to borrower contribution and second home requirements were made to align with Fannie Mae and Freddie Mac.
Genworth said it cut its minimum credit score to 720 and raised the maximum debt-to-income ratio to 45 percent on investment property loans for loan amounts from $417,001 to $650,000. The changes apply to purchase financing and rate-term refinances.
On primary residences, minimum credit scores are now 660 and maximum LTV ratios are 95 percent
on loans between $417,001 to $650,000 for purchase-money loans and rate-term refinances.
Three-year adjustable-rate mortgages are now eligible products on construction-to-permanent loans.
The mortgage insurance company also updated its programs to allow atypical/unique properties to be considered with Genworth Underwrite
and re-introduced and expanded its pledged asset program.
The changes impact all M.I. applications that were received on or after March 31.
